Although firms have ethical responsibilities to their employees and customers,they do not have a parallel social responsibility because socially responsible actions involve costs without corresponding benefits which are not wealth maximizing.

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Firms do have a social responsibility to consider wider societal impacts and act in a way that benefits society as a whole, even if there may be short-term costs or trade-offs. This is known as corporate social responsibility. While the primary goal of firms is to create wealth for their shareholders, it is recognized that this can be done in a sustainable and responsible way that takes into account the interests of other stakeholders such as employees, customers, the environment, and broader society.

Although Firms Have Ethical Responsibilities to Their Employees and Customers,they